Trading cryptocurrency. How to start?

Users are now actively exploring the possibility of buying crypto currency. This is not surprising, because this innovative asset today allows you to receive a higher return in comparison with the classical investment tools. However, the low level of knowledge in the issue of trade in crypto currency and its direct work does not allow the bulk of potential investors to succeed. Against this background, we offer practical recommendations that will allow you to start trading electronic coins in the safest and most professional mode.

So, cryptocurrency market is quite specific, and for trading it will require a series of preparatory work, related both to the purely technical side and to training. The first moment about which it is necessary to take care of every novice investor in the crypto currency is to choose the way of storing your electronic assets. Believe me, this is very important, as crypto-currencies today attract fraudsters, and you can become their victim.

How to store crypto currency?

Electronic coins are stored in several ways: on so-called purses, which have several formats, which we will discuss in detail. Today, users can use the following types of wallets to store crypto currency:

• Online purse Crypto-currency

Let’s start with the simplest and most accessible – a web or online wallet. This is an online platform where you can draw up an account, thereby entrusting it to store your cryptonyms. In this case, all personal keys and system codes are stored on a relatively secure third-party service.

This format of storing electronic coins is convenient in that it does not require specialized resources and is the simplest in terms of registration. Further, these services provide a very simple and fast format for carrying out operations on the exchange of crypto currency, as well as the possibility of trading these assets

But along with the advantages of this type of wallets has big drawbacks – it is the ability to crack the resources of users and theft of crypto-currency funds. The online mode of the wallet allows scammers to use phishing methods, a variety of viruses and hacker hacking accounts to steal users’ funds.

For this reason, this format of wallets is not used by large players to store crypto currency – usually this mode of storage is used on crypto-exchange exchanges, where investors need high speed of trade transactions by electronic coins. In general, if you are a beginner of the crypto-currency market, the web-purse can be an excellent start for you for more advanced work with electronic means of calculation in the future.

• Cold currency for crypto currency

Cold storage – here, in contrast to the online wallet, is used as a protection offline mode. Yes, as it is not strange, but the Internet technology for its maximum protection requires removal from network access.
Cold or Desktop wallets use specialized programs to store coins, which need to be downloaded to a personal computer. Here it is necessary to say that such products have a very large volume, so when choosing a desktop purse, take care that there is a free space on your computer – you need at least 100 GB. But despite such difficulties, a cold purse for crypto currency is one of the safest means of storing electronic coins.
We offer to consider the main advantages and disadvantages of cold storage of electronic currencies. As advantages, we give such factors as:

• Offline mode that restricts third-party access to the crypto currency
• Remote key and code storage mode
• Quality of the software product – almost all desktop purses are provided only on the sites of the developers of crypto currency
• Highest security level

The disadvantages are:

• Large volume of specialized support
• Low transaction speed

The bulk of crypto-experts include the cold storage of coins to the best wallets for crypto-currency. This is confirmed by the fact that today there are no facts of hacking such a format of wallets.

• Hardware purse for crypto currency

Another way to store crypto currency in an offline format is a hardware wallet. In this mode, special technical equipment is used, which is almost an ordinary USB flash drive, where both coins of electronic means of calculation are stored, and codes of access to the system.

Hardware wallets are very convenient for immediate wearing, allow using the built-in OLED screen to monitor the balance of the crypto currency and offer the safest mode of storing coins. To be able to conduct transactions you will need to connect the purse to a computer or mobile gadget with access to the network, which is probably the only major shortage of the hardware purse in technical terms. In addition to technical shortage, hardware wallets have obvious – high cost.
In addition to the security of the crypto currency, hardware wallets offer their own highly effective protection. Even with loss or theft of the device, third parties will not be able to access your assets, as the wallet is protected by a high-level PIN code. In addition, the bulk of crypto-currency wallets of this type provides customers with a special initialization mode that allows you to restore access to crypto-currency assets with the loss of the device itself, which makes this storage approach the most reliable.

After choosing the best way for you to store the crypto currency, you can proceed to the next preparatory stage – choosing a crypto-exchange.

How to choose a trading platform for trading crypto-currencies?

When choosing a trading platform, many investors make many mistakes – they rarely pay attention to the full list of operating conditions of companies and its technical equipment, do not assess the financial conditions of the exchange, do not study the reputation of the platform in the network. This, in the end, gives a negative result. In addition, the wrong choice of a shopping service can lead to a situation in which you will work on a fraudulent resource and, ultimately, lose your investment. To do this, dealers came up with a large number of techniques and schemes – from manipulating liquidity to banal investment theft. Against this background, we suggest working on large system resources of crypto-exchanges, which occupy a rather large segment of this market.

To choose a stock exchange, you can use several methods: to choose a platform in a special rating on information portals dedicated to crypto-currencies or to independently study and evaluate the conditions offered by various trade services. The second option will make it possible to make a more efficient choice of the exchange for the trade in crypto currency

Use the following metrics to select the platform:

• The overall reputation of the platform in the user environment
• Number of active investors working on the service
• Volumes of intraday trading
• The amount of crypto currency available for trading
• Financial conditions of work on the platform
• Requirements for registration and verification of customers
• Access to a variety of payment services for settlements
• The level of the daily limit on crediting and withdrawal of funds

In addition to these factors, you can use the following as auxiliary indicators of determining the effectiveness of a trade service:

• Convenience of the trading platform interface
• Access to analysis tools and information services
• Diversity of statistical services for the analysis of investment activities
• Ability to carry out margin trading
• Country of basing of crypto-exchanges

Using these recommendations and analyzing these data, any potential investor will be able to select for himself the most optimal resource for working with crypto-currencies.
So, we figured out where to store the crypto currency and where to buy the necessary asset. Now we need to understand the principle of trade and how trading takes place. It is very important for this to be trained.

Training in Trading

The basic rules for successful trading, regardless of the choice of an asset or a trading instrument, are permanent training, professional growth, practice and discipline. It is impossible to work in the market without knowing its laws, laws, principles of pricing and drivers of influence. Intuition, luck and fortune telling do not work here.

That’s why professionals always say that investors who consider trading as a game will never succeed! Only hard work, constant improvement of skills will become a successful investor in the crypto currency.

Another common mistake novice traders – this is the wrong approach to training. Often a newcomer, having tried his strength, and having obtained a certain result, quickly goes on to major deals. Gentlemen, this is not enough, and say responsibly: trading has many formats and offers a very wide variety of technical approaches without learning which to become a professional and to achieve results is impossible. You, of course, can get certain skills by reading a short trading manual, but only a thorough knowledge of the principles of fundamental and technical analysis will give you the opportunity to steadily correctly predict the market of crypto currency.

So, the learning process does not need to start with the search for “GRAAL” or “GURU”, which will help you in trading. First, nothing is done here for free, and secondly, there are simply no such categories in trading by crypto-currencies. The most important tool for your success is personal knowledge and experience. You need to start with the basics, and here’s an example plan for learning:

1. Start education with concepts. It’s logic – if you do not know what the term means, you just will not understand what is going on in more complex materials. To do this, it will be sufficient to use specialized sites dedicated to the topic of trading in crypto currency
2. The market, including crypto-currency, builds quotes of assets, subject to certain laws and laws, so the main emphasis should be made on the study of technical analysis, which fully describes all the processes of formation of asset schedules. Here it is recommended to pay attention to techniques that are time-tested and are the most effective in trading classical financial assets.

3. Crypto-currencies are specific in terms of their rate formation, so without studying the principles of fundamental analysis is indispensable. Here you must determine the circle of the most important and strong drivers of influence on the price changes of the crypto currency. Basically, these are the volumes of trade, the activity of traders, news about the regulation of coins, the recognition of electronic assets by the states.
This set will be enough for you not only for profitable work in the market, but also for developing your own professional strategy of work.
4. Very clearly study the principles of managing trading risks and capital, which are described by such a concept as money management. This is not only a question of preserving capital and its multiplying, but also a matter of the personal financial discipline of the trader, which allows to stabilize the results in a long term perspective of work in the market. As a result, you can develop the most optimal trading conditions for you.

So, after theoretical training, having received initial skills you can start trading in the crypto currency market.

Conclusion

We have offered you a list of recommendations that will make an experienced and successful investor from the beginner of the crypto-currency market. Believe me, without the specified stages of becoming a trader, you will not be able to get a financial result, but rather lose your investment. Without training and the right choice of professional tools it is impossible to work with high-tech assets!

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